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About Good Neighbor Next Door

March 26th, 2009 10:07 AM

About Good Neighbor Next Door

Law enforcement officers, pre-Kindergarten through 12th grade teachers and firefighters/emergency medical technicians can contribute to community revitalization while becoming homeowners through HUD's Good Neighbor Next Door Sales Program. HUD offers a substantial incentive in the form of a discount of 50% from the list price of the home. In return you must commit to live in the property for 36 months as your sole residence.

How the Program Works

Eligible Single Family homes located in revitalization areas are listed exclusively for sales through the Good Neighbor Next Door Sales program. Properties are available for purchase through the program for five days.

How to Participate in Good Neighbor Next Door

Check the listings for your state. Follow the instructions to submit your interest in purchasing a specific home. If more than one person submits on a single home a selection will be made by random lottery. You must meet the requirements for a law enforcement officer, teacher, firefighter or emergency medical technician and comply with HUD's regulations for the program.

HUD requires that you sign a second mortgage and note for the discount amount. No interest or payments are required on this "silent second" provided that you fulfill the three-year occupancy requirement.

The number of properties available is limited and the list of available properties changes weekly.

To learn more, please see our Good Neighbor Sales Frequently Asked Questions!

Posted by Aaron Walker on March 26th, 2009 10:07 AMPost a Comment (0)

FHA 203(k) Streamline Limited Repair Program Loan Process

March 30th, 2009 1:02 PM

FHA 203(k) Streamline Limited Repair Program Loan Process

The 203(k) Streamline Limited Repair Program allows a customer to purchase or refinance a home and make limited upgrades/repairs to the property all under one single loan. The loan is not re-qualified as it is only underwritten one time, upfront.

There is no minimum amount for the repair costs; however the maximum is $35,000 (includes 10% contingency, supplemental origination fee, and final inspection fee).

There is a mandatory 10% contingency required on all 203(k) streamline loans. This contingency is held until final disbursement. If the contingency is not used it will be applied to the principal mortgage balance.

The repair funds are held in escrow.

No more than two payments may be made payable to each specialized contractor or to the borrower, if the borrower is performing the work under a self-help arrangement.

The borrower is given 3 months from the closing date to complete all the repair/rehab work.

Eligible Properties

One-to-Four (single family) residences, including HUD REO properties Manufactured Homes are allowed (must meet FHA guidelines on our website)

Spot Approval for Condos is permitted on this program

Property must be 100% complete – no partially built homes

Eligible Improvements/Work

Repair/Replacement of roofs, gutters and downspouts

Repair/Replacement/upgrade of existing HVAC systems

Repair/Replacement/upgrade of plumbing and electrical systems

Repair/Replacement of flooring

Minor Remodeling, such as kitchens, which does not involve structural repairs

Painting, both exterior and interior

Weatherization, including storm windows and doors, insulation, weather stripping, etc.

Purchase and installation of appliances, including free-standing ranges, refrigerators, washers/dryers, dishwashers and microwave ovens

Accessibility improvements for persons with disabilities

Repair/Replace/add exterior decks, patios, porches

Basement finishing and remodeling, which does not involve structural repairs

Basement waterproofing, including mold removal

Window and door replacements and exterior wall re-siding

Septic system and/or well repair or replacement

Connection to public water or sewage system

Ineligible Improvements/Work

Major rehabilitation or major remodeling, such as the relocation of a wall

New construction (including room additions)

Repair of structural damage

Repairs requiring detailed drawings, plans or architectural exhibits

Landscaping or similar site amenity improvements, including fence

Lead-based paint stabilization or abatement of lead-based paint hazards

Any repair or improvement requiring a work schedule longer than three (3) months; or Rehabilitation activities that require more than two (2) draws/payments.

Any work requiring a plan reviewer

Result in work not starting within 30 days after loan closing; or cause the borrower to be displaced from the property for more than 30 days during the time the rehabilitation work is being conducted (FHA anticipates that, in a typical case, the borrower would be able to occupy the property after the mortgage closing.

Contractors and Repair Criteria

All repairs/work must be completed within 3 months of the closing date.

Repairs must be completed by a contractor unless the borrower can demonstrate the required expertise/experience (ie: plumbing repairs would require a licensed plumber, electric work would require a licensed electrician).

The contractor making the repairs does not have to be a licensed general contractor; however, he must provide a resume along with two references (see client reference form).

The cost of repair(s) must be reasonable.

Use of Contractors:

Contractors provide estimates for the work to be done.

Contractors provide a resume and two references (see client reference form)

The lender will review the contractor’s credentials verifying jurisdictional requirements for licensing, bonding & insurance are met (we will need a copy of all these docs).

Each contractor must sign a homeowner/contractor agreement.

The cost estimate(s) provided must clearly state the nature and type of repair and cost for completion of the work item.

Additional cost estimates may be required from the borrower.

Self Help (borrowers completing work):

The borrower is required to have the necessary expertise and experience to complete the work in a satisfactory manner (ie: borrower is a licensed plumber and will complete that portion of the work).

The cost of labor is included in the repair/rehabilitation cost (in case the borrower is unable to complete the work and a contractor must be hired).

The borrower may not be compensated for his/her labor.

No sweat equity.

The borrower must provide written estimates of the repair/rehabilitation costs as well as written estimates from the suppliers of the materials that the borrower will purchase

The borrower must sign and complete the self help agreement.

“Cost Plus” or “Time and Material” contracts are prohibited.

Posted by Aaron Walker on March 30th, 2009 1:02 PMPost a Comment (0)

Free Birthday Stuff!

March 16th, 2009 3:35 PM

You say it’s your birthday…

Everyone loves birthdays and everyone loves free stuff. Luckily for us, there are a ton of places out there that offer birthday freebies! I’ve compiled a list of some of the best birthday freebies out there. Remember that some places will want you to show proof, so be honest!

Abbot’s Frozen Custard - Join the Abbott’s Frozen Custard Fun Club to a get a free frozen custard on your birthday. The site says there will also be freebies throughout the year for their members.

Alfy’s Pizza - Get a free mini pizza on your birthday.

Applebee’s - Free dessert and song on your birthday.

Austin Grill - Register for their eClub and get a free meal on your birthday.

Auto Zone - Come in on your birthday and get a free oil change. **No longer valid**

Bakers Square - Get a free peice of pie on your birthday at Bakers Square.

Bandido’s - Get $10 off your favorite entree when you celebrate your birthday at Bandido’s in Ohio and Indiana.

Baskin Robbins - Baskin Robbins will send you a coupon for a free 2.5 oz scoop of ice cream on your birthday plus other special promotions when you join the Baskin Robbins Birthday Club.

BD’s Mongolian BBQ - Receive a free stifry on your birthday when you join Club Mongo.

Ben & Jerry’s - Get a free ice cream treat on your birthday when you become a ChunkSpelunker with Ben & Jerry’s.

Bennigan’s - Get a buy 1 entree, get 1 entrée free and a free brownie ice cream dessert coupon on your birthday.

Black Angus Steakhouse - Get a free steak dinner on your birthday when you join the BA Prime Club. You also get a complimentary dessert for signing up for the club.

Blimpie - Get a coupon for a free 6” sub on your birthday at Blimpie’s.

Blue Bell - Members of the Blue Bell Country Club will receive a gift certificate for a free half gallon of Blue Bell Ice Cream during the month of their birthday.

Bob’s Big Boy - Get a free hot fudge ice cream on your birthday.

Bob Evans - Sign up your child for their birthday club and they’ll get a free kids’ meal on their birthday at Bob Evans.

The Body Shop - The Body Shop will give you a free birthday gift up to a $10 value during the month of your birthday. **No longer valid**

Boston Market - Kids 12 and under will receive a birthday coupon good for a free kid’s meal, drink, and dessert at Boston Market.

Buffalo Wild Wings - Get a free dozen hot wings on your birthday at Buffalo Wild Wings. **No longer valid**

Burger King - Sign up your child to be a member of Club BK so they can get a free kid’s meal on their birthday.

California Pizza Kitchen - Sign up your child (10 and under) for CPKids and they will receive a free CPKids meal during the month of their birthday.

Captain D’s - Kids get a free kids meal and birthday greeting on their birthday at Captain D’s.

Caribou Coffee - Create an account and be sure to update it with your birthday. They will send you a coupon for a free coffee drink on your birthday.

Carrows - Join the Carrows E-Club to get a free dessert on your birthday as well as one for joining.

Cattlemen’s - Join the Cattlemen’s E-Club and get a free dessert when you come in on your birthday.

Charlie Brown’s Steakhouse - Get a free gift on your birthday as a member of the Charlie Brown’s Handshake Club as well as gift vouchers and special members-only events.

Chevys - Join Chevys Compadres Club and get a free dessert on your birthday.

Claim Jumper Restaurant - Join the CJ E-Club and get a free dessert on your birthday.

Cold Stone Creamery - Cold Stone Creamery will send you an email with a coupon for a free ice cream creation to enjoy on your birthday. All ages are welcome!

Country Buffet - Join the eClub and get a free birthday coupon in the mail.

Crazy Buffet - Bring a friend and your ID into Crazy Buffet on your birthday and get a free dinner buffet.

Dairy Queen - Join the Dairy Queen Blizzard Fan Club and get a free ice cream cone on your birthday as well as a coupon for a blizzard when you join.

Dave & Buster’s - Get a free $5 game card credit on your birthday.

Denny’s - Fill in and mail out this form to enroll your child (10 and under) in the Denny’s Kids’ Birthday Club where they will receive a birthday card entitling them to a free kid’s entrée and sundae.

Desparados Mexican Restaraunt - Come in and get a free meal at Desparados on your birthday.

Dockside Restaurants - Get a free meal on your birthday.

Duke’s ChowderHouse - Get a coupon for a free lunch or dinner entree on your birthday when you sign up on Duke’s website.

Famous Daves BBQ - Free food coupon via email on your birthday when you join the Famous Dave’s P.I.G. Club (could be free cake, an appetizer, or some ribs!).

Firehouse Subs - Jon the Firehouse Subs Birthday Club and enjoy a free sub on your birthday.

Friendly’s - Sign up for Friendly’s E-News and get free ice cream for your birthday. This is now for kids and adults!

Fuddruckers - Join the Fudds Club and gett a free burger on your birthday. (May not be available in all areas.)

Garozzo’s Ristorante - Bring in your driver’s license to get a free spedini meal at this Kansas City eatery.

Hana Japan - Get a free birthday lunch or dinner when you bring in 4 or more people on your birthday.

Hard Rock Cafe - Come in and get a free dessert on your birthday.

Hollywood Video - Get a free rental at Hollywood Video on your birthday with card membership. In fact, anyone on your account can get a free rental on their birthday.

Hometown Buffet - Join the eClub and get a free birthday coupon in the mail.

Houlihan’s - Visit Houlihan’s on your birthday and get free cake and ice cream.

IHOP - Come on into IHOP and get a free meal on your birthday. (May not be available in all areas.)

Joe’s Crab Shack - Go to Joe’s Crab Shack on your birthday and get a free piece of cake.

Luby’s - Free kid’s birthday meal (ages 9 and younger) on their birthday as a member of the Luby’s birthday club.

Macaroni Grill - Come on into Macaroni Grill on your birthday and get a free dessert plus a song.

Marie Callender’s - Join Marie Callender’s E-Club and get a coupon for $5 off your meal and piece of pie when you visit during the month of your birthday.

McDonald’s - Free Happy Meal for your child on their birthday. This offer is only good at participating McDonald’s in Colorado, Greater Las Vegas Area, Western Nebraska and Wyoming.

Memphis Barbecue - Receive a coupon good for a free rack of ribs and a dessert when you join the free eClub.

Moe’s Southwest Grill - Get a coupon for a free Moe’s entree on your birthday when you choose to “stay in the moe.”

Noodles & Company - Join the Noodleville Noodlegram to get a coupon for a free dish on your birthday.

Olan Mills Portrait Studios - Get a free Olan Mills portrait package that includes (1) 8X10, (2) 5X7 and (8) wallets when you join the birthday club.

Old Country Buffet - Join the eClub and get a free birthday coupon in the mail.

Old Spaghetti Warehouse - Join the Warehouse Club and get a coupon for a free meal on your birthday.

On the Border - Get a free appetizer on your birthday when you join On the Border’s Club Cantina. When you initially join you will get an instant coupon for a free bowl of queso or empanadas.

Outback - Get a free dessert and a song when you go to Outback on your birthday.

P.F. Changs - Come in and get a free dessert on your birthday.

Pancho’s - Join Pancho’s Birthday Club to get $10 off the bill for adults or $5 off the bill for kids.

Perkins - Receive an email for a free kid’s meal and birthday greeting on their birthday when you sign them up for the Bakery Buddies Kid’s Birthday Club.

Provino’s - Come on into Provino’s on your birthday and show your ID to get a free pasta speciality dinner (which includes salad, garlic rolls and a birthday dessert!).

Red Lobster - Join the Overboard Club and they will email you a suprise for your birthday.

Red Robin - Join the Red Robin eClub and get a coupon for a fee burger on your birthday. This is for all ages!

Rock Bottom - Join the Mug Club and get a free appetizer on your birthday.

Round Table - Get a free personal pizza when you visit on your birthday.

Ru Sans - Visit Ru Sans to sign up for their birthday card to get free food on your birthday.

Sephora - Sign up as a Beauty Insider and get a free gift from Sephora on your birthday.

Shoney’s - Get your child (10 and under) a free kid’s meal on their birthday when you sign them up for the the Kids Club.

Sonic - Members of the Wacky Pack Kid’s Birthday Club will receive a coupon for a free Wacky Pack during the week of their birthday.

Taco Bell - Get a free combo meal of your choice on your birthday at Taco Bell. (May not be available in all areas.)

Taco Time - Taco Time send kids ages 12 or younger a coupon for a free kid’s meal on their next birthday.

Texas Roadhouse - Become a Texas Roadie and come into Texas Roadhouse to get a free dessert on your birthday.

TGI Friday’s - Receive a coupon for a free appetizer to use on your birthday when you sign up for Friday’s E-Club. You also get a coupon for a free appetizer just for signing up!

Tony Roma’s - Get a free dinner on your birthday from Tony Roma’s.

Toys ‘R’ Us - Children ages 2 – 10 will receive a birthday card and surprise gift from Geoffrey when you sign them up for Geoffrey’s Birthday Club.

Zio’s Italian - Come in and get a free dessert on your birthday at Zio’s.

Posted by Aaron Walker on March 16th, 2009 3:35 PMPost a Comment (0)

Home Affordable Refinance FAQs

March 5th, 2009 9:28 AM

March 4, 2009

The Making Home Affordable program includes a new initiative – Home Affordable Refinance – to assist homeowners in refinancing their mortgages. The goal of Home Affordable Refinance, as announced by the President, is to "provide access to low-cost refinancing for responsible homeowners suffering from falling home prices."

The primary expectation for Home Affordable Refinance is that refinancing will put responsible borrowers in a better position by reducing their monthly principal and interest payments or moving them from a more risky loan structure (such as interest-only or short-term ARM) to a more stable product (such as a fixed-rate mortgage).

Fannie Mae’s Home Affordable Refinance initiative has three primary components:

Expand opportunities for Fannie Mae to Fannie Mae refinances through Refi Plus™, which includes Desktop Underwriter® (DU®) and manual underwriting eligibility

Allow an LTV up to 105% on the new loan and additional underwriting flexibilities

Provide a solution for borrowers with LTVs above 80 percent who currently may not be able to refinance because of mortgage insurance (MI) coverage requirements:

Original Loan LTV Ratio

Existing MI Coverage

MI Coverage for New Loan

80% or less

None

Not required

Over 80%

None (previously canceled or terminated per Selling and Servicing Guide requirements)

Not required

Yes

The level of coverage in force on the existing loan or standard coverage in accordance with the Selling Guide*

Posted by Aaron Walker on March 5th, 2009 9:28 AMPost a Comment (0)